Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/69905
Authors: 
Martin, Johannes
Year of Publication: 
2013
Series/Report no.: 
SOEPpapers on Multidisciplinary Panel Data Research 537
Abstract: 
Using data of the German Socio-Economic Panel (GSOEP) earnings differentials between self-employed and wage-employed workers in the German labor market are explored. Previous research based on US data reports lower incomes for entrepreneurs. In contrast to that, the findings of this contribution suggest the opposite for German entrepreneurs. They have considerably higher earnings than wage-employed workers. Furthermore, there is a significant and positive effect on earnings when entering self-employment. This holds true when it is also taken into account that workers usually report a smaller firm size and work longer after beginning an entrepreneurial occupation.
Subjects: 
self-employment
human capital
earnings
GSOEP
entrepreneurship
JEL: 
L26
J31
J32
Document Type: 
Working Paper

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